T-Bill Rates Advance: The Treasury sold $8.4...
From Times Staff and Wire Reports
T-Bill Rates Advance: The Treasury sold $8.4 billion of new three-month bills at an average discount rate of 7.91%, up from 7.78% last week. Another $8.4 billion of new six-month bills was sold at an average discount rate of 8.03%, up from 7.91% last week. The rates were the highest since three-month bills sold for 7.77% on March 19, and six-month bills averaged 8.08% last June 19. The new discount rates understate the actual return to investors--8.18% for three-month bills, with a $10,000 bill selling for $9,800.10, and 8.49% for a six-month bill selling for $9,594.00. The discount rate reflects the price discount received when government securities are purchased at less than face value.
